5 3 points Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,100 kayaks and sold 850 at a price of $1,100 each. At year-end, the company reported the following income statement information using absorption costing. Sales (850 x $1,100) Cost of goods sold (850 x $450) Gross profit Selling and administrative expenses Income Additional Information $ 935,000 382,500 552,500 240,000 $ 312,500 a. Product cost per kayak under absorption costing totals $450, which consists of $350 in direct materials, direct labor, and variable overhead costs and $100 in fixed overhead cost. Fixed overhead of $100 per unit is based on $110,000 of fixed overhead per year divided by 1,100 kayaks produced. b. The $240,000 in selling and administrative expenses consists of $95,000 that is variable and $145,000 that is fixed. Prepare an income statement for the current year under variable costing. Answer is not complete. KENZI Income Statement (Variable Costing) $ 935,000 Sales Less: Variable expenses Variable cost of goods sold $ 382,500 Variable selling and administrative expenses Contribution margin 382,500 552,500 x Less: Fixed expenses Fixed overhead 110,000 Fixed selling and administrative expenses 240,000 350,000 Income S 202,500